Digital Asset Resources

Accounting for and Auditing of Digital Assets [Practice Aid]

The digital asset ecosystem is changing and expanding rapidly.  For financial statement prepares or auditors, either currently in the digital asset ecosystem, or considering entering it, the Digital Assets Working Group developed a practice aid, which includes vital information for professionals on how to account for and audit digital assets. It is intended for those with a fundamental knowledge of blockchain technology, is based on existing professional literature and the experience of members of the Digital Assets Working Group and is specific to U.S. GAAP and GAAS.

As additional topics are completed, this Practice Aid will be updated.

Coming Soon  - Download the Practice Aid

Accounting Overview

  • Classification and Measurement When an Entity Purchases Crypto Assets
  • Recognition and Initial Measurement When an Entity Receives Digital Assets that are Classified as Indefinite-Lived Intangible Assets
  • Accounting for Digital Assets Classified as Indefinite-Lived Intangible Assets
  • Measurement of Cost Basis of Digital Assets that are Classified as Indefinite-Lived Intangible Assets
  • Derecognition of Digital Asset Holdings that are Classified as Indefinite-Lived Intangible Assets
  • Recognition of Digital Assets - When an Entity Uses a Third-Party Hosted Wallet Service

Auditing Overview [Coming Soon]

  • Note: For auditors considering accepting or continuing audit engagements that involve digital assets, it is important for auditors to critically consider the potential risks unique to the digital asset ecosystem and skillsets necessary before concluding on whether to accept or continue an engagement.

Additional Resources:

  • Whitepaper: 2019 Blockchain Symposium: Experts' Insights Indicate Growing Use Cases and Value for the Technology
  • Accounting for Digital Assets under US GAAP Webcast
  • Blockchain Resources
  • CPA.com Blockchain in Accountancy Symposium Report – Coming Dec